₹12 Lakh CTC In-Hand Salary in India
If your annual CTC is ₹12 lakh, you can expect roughly ₹93,788 in your bank account each month under the new tax regime, or ₹11,25,454 over the year. The exact amount depends on how your employer splits the CTC, whether PF is calculated on capped or full basic, and the regime you choose.
With a typical structure — basic at 50% of CTC and PF on the ₹15,000 wage ceiling — about 93.8% of this CTC reaches you as cash. The rest goes to employer PF (₹21,600), gratuity (₹28,846), your own PF (₹21,600), professional tax (₹2,500) and income tax (₹0).
Tax rules for FY 2026-27 · last updated 3 October 2026. Calculations are estimates. Actual salary may vary based on employer payroll structure, exemptions, deductions and state-specific rules.
Estimated monthly in-hand on ₹12 Lakh CTC
Pre-filled with ₹12 Lakh. Change the structure, state or regime to match your offer.
12 lakh per year
Or pick a common CTC
Your estimated in-hand salary · New regime
₹93,788/ month
₹11,25,454 a year
- CTC
- ₹12.00 L
- In-hand per year
- ₹11.25 L
- Income tax
- ₹0
- 0% effective
- Total deductions
- ₹24,100
- Tax, PF, PT, other
- In-hand salary₹11,25,454 (93.8%)
- PF (yours + employer's)₹43,200 (3.6%)
- Gratuity₹28,846 (2.4%)
- Professional tax & other₹2,500 (0.2%)
Salary breakdown
| Component | Monthly | Annual |
|---|---|---|
| Annual CTC | ₹1,00,000 | ₹12,00,000 |
| − Employer PFGoes to your PF account, not your bank | ₹1,800 | ₹21,600 |
| − GratuityPaid only after 5 years' service | ₹2,404 | ₹28,846 |
| Gross salary | ₹95,796 | ₹11,49,554 |
| Basic salary | ₹50,000 | ₹6,00,000 |
| HRA | ₹20,000 | ₹2,40,000 |
| Special allowance | ₹25,796 | ₹3,09,554 |
| − Employee PF | ₹1,800 | ₹21,600 |
| − Professional tax | ₹208 | ₹2,500 |
| − Income tax (new regime)Includes 4% cess | ₹0 | ₹0 |
| In-hand salary | ₹93,788 | ₹11,25,454 |
Assumptions used
- Basic salary: 50% of CTC
- HRA: 40% of basic
- PF: 12% of basic, capped at the ₹15,000/month PF wage ceiling
- Gratuity: included in CTC at 4.81% of basic
- Professional tax: Maharashtra — Women earning up to ₹25,000 a month are exempt in Maharashtra. This calculator uses the general schedule.
- Effective income-tax rate: 0% of gross income
Employers structure salaries differently. Change any of these under “Customise salary structure”.
New regime vs old regime
Same salary, both regimes, FY 2026-27.
| Metric | Old regime | New regimeLower tax |
|---|---|---|
| Gross income | ₹11,49,554 | ₹11,49,554 |
| Standard deduction | ₹50,000 | ₹75,000 |
| Exemptions & deductions | ₹24,100 | ₹0 |
| Taxable income | ₹10,75,454 | ₹10,74,554 |
| Tax on slabs | ₹1,35,136 | ₹47,455 |
| Rebate | ₹0 | ₹47,455 |
| Cess (4%) | ₹5,405 | ₹0 |
| Total tax | ₹1,40,542 | ₹0 |
| Monthly in-hand | ₹82,076 | ₹93,788 |
Based on the information entered, the estimated tax liability differs by ₹1,40,542 between the two regimes, with the new regime lower. Your actual liability depends on deductions you can claim. Review both before choosing.
Income tax on ₹12 Lakh CTC
Gross salary of ₹11,49,554 minus the ₹75,000 standard deduction leaves taxable income of ₹10,74,554. That's within the ₹12 lakh rebate limit, so the ₹47,455 slab tax is fully offset and you pay no income tax under the new regime.
| Income slab | Rate | Taxed amount | Tax |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹4,00,000 | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹2,74,554 | ₹27,455 |
Example monthly payslip
| Basic salary | ₹50,000 |
|---|---|
| House rent allowance (HRA) | ₹20,000 |
| Special allowance | ₹25,796 |
| Gross monthly salary | ₹95,796 |
| Employee PF | − ₹1,800 |
| Professional tax (average) | − ₹208 |
| Income tax (TDS) | ₹0 |
| Net pay | ₹93,788 |
Old vs new regime at ₹12 Lakh
With no deductions beyond PF, the old regime would cost ₹1,40,542 — ₹1,40,542 more than the new regime. For the two to cost the same, you'd need about ₹5,76,000 of additional old-regime deductions and exemptions (80C, 80D, HRA exemption, home-loan interest and so on). For reference, the main capped deductions — 80C (₹1.5 lakh), NPS 80CCD(1B) (₹50,000) and home-loan interest (₹2 lakh) — total ₹4 lakh before HRA and health insurance.
The full side-by-side table is in the calculator above. For a deeper comparison with your own deductions, use the old vs new regime calculator.
₹12 Lakh vs ₹10 Lakh
Compared with a ₹10 Lakh CTC, the extra ₹2 lakh adds about ₹16,266 to monthly in-hand pay. Roughly 97.6% of the increase reaches your bank account; the rest goes to PF, gratuity and tax.
What changes your take-home salary
- Your salary structure
- Basic is often 40–50% of CTC. A higher basic raises PF (if not capped) and gratuity, which lowers monthly cash but increases savings.
- PF on capped or full basic
- Basic pay is about ₹50,000 a month, above the ₹15,000 PF wage ceiling. If your employer deducts PF on the full basic instead of the capped ₹1,800, monthly in-hand falls by about ₹8,400 to ₹85,388 — though that money still goes into your PF account.
- Professional tax in your state
- This page uses Maharashtra, where professional tax works out to ₹2,500 a year. States such as Delhi, Haryana and Uttar Pradesh don't levy it; the maximum anywhere is ₹2,500 a year.
- Tax regime
- The new regime is the default. The old regime only costs less if your deductions and exemptions are large enough — see the comparison above.
₹12 Lakh salary: frequently asked questions
What is the in-hand salary for ₹12 lakh CTC?
About ₹93,788 a month (₹11,25,454 a year) under the new regime, assuming basic at 50% of CTC, PF on the ₹15,000 ceiling, gratuity included in CTC and professional tax as in Maharashtra. Under the old regime with no extra deductions it is about ₹82,076 a month.
How much income tax is payable on a ₹12 lakh salary?
Nil under the new regime for FY 2026-27, because taxable income of ₹10,74,554 is within the rebate limit. Under the old regime without deductions, tax would be ₹1,40,542.
Is ₹12 lakh CTC the same as a ₹12 lakh salary?
No. CTC includes employer PF (₹21,600) and gratuity (₹28,846), so gross salary is ₹11,49,554. After your own PF, professional tax and income tax, in-hand pay is ₹11,25,454.
Does PF reduce monthly in-hand salary at ₹12 lakh CTC?
Basic pay is about ₹50,000 a month, above the ₹15,000 PF wage ceiling. If your employer deducts PF on the full basic instead of the capped ₹1,800, monthly in-hand falls by about ₹8,400 to ₹85,388 — though that money still goes into your PF account.
Which tax regime should I compare at ₹12 lakh?
Compare both. With no deductions beyond PF, the old regime would cost ₹1,40,542 — ₹1,40,542 more than the new regime. For the two to cost the same, you'd need about ₹5,76,000 of additional old-regime deductions and exemptions (80C, 80D, HRA exemption, home-loan interest and so on). For reference, the main capped deductions — 80C (₹1.5 lakh), NPS 80CCD(1B) (₹50,000) and home-loan interest (₹2 lakh) — total ₹4 lakh before HRA and health insurance.
How does professional tax affect take-home salary?
Professional tax is a state levy deducted monthly by your employer. In Maharashtra it is ₹2,500 a year at this salary — about ₹208 a month. It's deductible from taxable income only under the old regime.